Twitter Inc (NYSE:TWTR) ended the trading session at $25.18 per share, down by 3.64% on Friday. The stock price of the company was below its initial public offering (IPO) price of $26 per share.
This is not the first time for the social media company to trade below its IPO price. In fact, Twitter’s shares traded as low as $21.01 each over the past 52 weeks. The company lost more than 29% of stock value year-to-date. This week alone, the stock lost 11% in value.
Market optimism on Twitter is fades
Bloomberg noted that the market optimism on Twitter after selecting Jack Dorsey as CEO faded since the company reported its third-quarter financial results that missed expectations. Investors were also disappointed by its weak outlook for the fourth quarter.
Dorsey started its leadership strong with big announcements including the appointment of a new Chairman, workforce reduction, and the introduction of Moments, an app designed to attract more casual users by providing instant updates on current events or breaking news, celebrities, sports and other significant issues around the world.
Investors are becoming concern on Dorsey’s leadership because he is also the CEO of Square, the mobile payment services company, which is currently preparing for its initial public offering (IPO). Square so expected to price its IPO on November 18.
Some investors are uncertain whether Dorsey can effectively lead Twitter and Square at the same time towards profitability. Currently, Twitter investors are concern about its growth given the fact that its user base has been stagnant.
Last month, it was reported that Twitter was planning to monetize users who are not logged in to its platform. The social media company will be testing a project that would include ads and promoted tweets visible to visitors who are not logged in on Twitter.
Dorsey addresses investors’ concerns regarding his dual role as CEO
During a lunch hosted for Square’s IPO marketing in Manhattan, Dorsey addressed investors’ pessimism regarding his role as CEO for both Twitter and the mobile payments services company.
Dorsey explained that his time is equally divided between Twitter and Square. He added that he spends some of his remaining time on the company that needs more attention.
Furthermore, Dorsey emphasized that his team are capable and anyone could step in and take over as CEO.
 ended the trading session at $25.18 per share on Friday, below its Initial public offering (IPO) price of $26 per share.){kind=link}